Zscaler (ZS) News Today

Zscaler, Inc. (NASDAQ: ZS) shares moved higher after the company’s investor day reinforced its near-term outlook and highlighted artificial intelligence as a major growth opportunity. The company reaffirmed its first-quarter and fiscal 2027 guidance, reducing concerns about recent go-to-market leadership changes and supporting the view that demand for zero-trust and AI security products remains strong.

• Positive Sentiment: Multiple analysts raised their price targets following investor day. Cantor Fitzgerald lifted its target to $275, Robert W. Baird to $285, Needham to $255, UBS, Truist and BNP Paribas Exane to $250, JPMorgan to $245, and Wedbush to $240. The upgrades reflect confidence in AI-security demand, cross-selling opportunities and new customer entry points. Wall Street sees 29% upside for Zscaler as eight firms raise price targets
• Positive Sentiment: Zscaler presented AI security as a significant demand catalyst, as enterprises seek protection from AI-agent-driven attacks. Analysts also cited expanding sales capacity, stronger new-customer acquisition and the potential for broader platform adoption. Zscaler Stock Jumps as AI Drives Demand for Zero Trust Platform
• Positive Sentiment: A new partnership with IBM and Red Hat will combine Zscaler’s Autonomous Application Shield with remediation tools to protect private applications during active vulnerability windows. The arrangement could strengthen Zscaler’s enterprise reach and product positioning. Zscaler unveils new private app security partnership
• Neutral Sentiment: Jefferies said the reaffirmed fiscal 2027 outlook supports near-term confidence, but considers management’s $10 billion fiscal 2031 annual recurring revenue target ambitious. Execution and sustained growth will be necessary to justify the long-term valuation. Zscaler’s $10 billion long-term ARR target looks ambitious
• Negative Sentiment: Analyst sentiment is not unanimous. Morgan Stanley maintained an equal-weight rating with a $185 target, below the current trading level, while BTIG reaffirmed its neutral rating. In addition, Pomerantz announced an investigation into potential investor claims, creating a modest headline risk. Pomerantz investor alert